EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
NYSE:EQNR - New York Stock Exchange, Inc. - US29446M1027 - ADR - Currency: USD
EQNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. While EQNR has a great profitability rating, there are some minor concerns on its financial health. EQNR has a bad growth rate and is valued cheaply. With these ratings, EQNR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year EQNR was profitable.
In the past year EQNR had a positive cash flow from operations.
Of the past 5 years EQNR 4 years were profitable.
In the past 5 years EQNR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.36%, EQNR is doing good in the industry, outperforming 68.72% of the companies in the same industry.
EQNR has a better Return On Equity (19.13%) than 82.94% of its industry peers.
EQNR has a Return On Invested Capital of 24.25%. This is amongst the best in the industry. EQNR outperforms 97.16% of its industry peers.
EQNR had an Average Return On Invested Capital over the past 3 years of 33.92%. This is significantly above the industry average of 23.79%.
The 3 year average ROIC (33.92%) for EQNR is well above the current ROIC(24.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 19.13% | ||
| ROIC | 24.25% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.92%
ROIC(5y)25.74%
1.3 Margins
With a Profit Margin value of 8.21%, EQNR perfoms like the industry average, outperforming 52.13% of the companies in the same industry.
EQNR's Profit Margin has improved in the last couple of years.
EQNR has a Operating Margin of 29.66%. This is in the better half of the industry: EQNR outperforms 70.14% of its industry peers.
In the last couple of years the Operating Margin of EQNR has grown nicely.
EQNR has a Gross Margin of 49.85%. This is comparable to the rest of the industry: EQNR outperforms 58.29% of its industry peers.
In the last couple of years the Gross Margin of EQNR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.66% | ||
| PM (TTM) | 8.21% | ||
| GM | 49.85% |
OM growth 3Y-8.57%
OM growth 5Y5.15%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EQNR is creating value.
Compared to 1 year ago, EQNR has less shares outstanding
The number of shares outstanding for EQNR has been reduced compared to 5 years ago.
EQNR has a worse debt/assets ratio than last year.
2.2 Solvency
EQNR has an Altman-Z score of 2.66. This is not the best score and indicates that EQNR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of EQNR (2.66) is better than 78.20% of its industry peers.
EQNR has a debt to FCF ratio of 4.02. This is a neutral value as EQNR would need 4.02 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.02, EQNR is doing good in the industry, outperforming 70.62% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that EQNR is not too dependend on debt financing.
EQNR's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. EQNR outperforms 46.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.66 |
ROIC/WACC3.29
WACC7.38%
2.3 Liquidity
EQNR has a Current Ratio of 1.37. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
EQNR has a better Current ratio (1.37) than 63.03% of its industry peers.
A Quick Ratio of 1.27 indicates that EQNR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.27, EQNR is in the better half of the industry, outperforming 66.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -10.15% in the last year.
The Earnings Per Share has been growing by 16.82% on average over the past years. This is quite good.
Looking at the last year, EQNR shows a small growth in Revenue. The Revenue has grown by 3.96% in the last year.
Measured over the past years, EQNR shows a quite strong growth in Revenue. The Revenue has been growing by 10.24% on average per year.
EPS 1Y (TTM)-10.15%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%17.12%
3.2 Future
EQNR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
The Revenue is expected to decrease by -4.76% on average over the next years.
EPS Next Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y4.97%
Revenue Next Year-5.64%
Revenue Next 2Y-4.34%
Revenue Next 3Y-3%
Revenue Next 5Y-4.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.88, the valuation of EQNR can be described as reasonable.
EQNR's Price/Earnings ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 77.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, EQNR is valued rather cheaply.
The Price/Forward Earnings ratio is 7.78, which indicates a rather cheap valuation of EQNR.
80.09% of the companies in the same industry are more expensive than EQNR, based on the Price/Forward Earnings ratio.
EQNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
99.05% of the companies in the same industry are more expensive than EQNR, based on the Enterprise Value to EBITDA ratio.
EQNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 78.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.5 | ||
| EV/EBITDA | 1.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EQNR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)0.53
EPS Next 2Y1.65%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.73%, EQNR is a good candidate for dividend investing.
EQNR's Dividend Yield is a higher than the industry average which is at 6.51.
Compared to an average S&P500 Dividend Yield of 2.37, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
5.2 History
The dividend of EQNR is nicely growing with an annual growth rate of 24.62%!
EQNR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)24.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
89.44% of the earnings are spent on dividend by EQNR. This is not a sustainable payout ratio.
The dividend of EQNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.44%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
26.1
+0.62 (+2.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.35%
Inst Owner Change0.01%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap70.40B
Analysts56.76
Price Target27.18 (4.14%)
Short Float %2.27%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.73% |
Yearly Dividend3.02
Dividend Growth(5Y)24.62%
DP89.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.95%
Min EPS beat(2)-23.64%
Max EPS beat(2)-12.26%
EPS beat(4)2
Avg EPS beat(4)-4.48%
Min EPS beat(4)-23.64%
Max EPS beat(4)14.06%
EPS beat(8)4
Avg EPS beat(8)-1.4%
EPS beat(12)7
Avg EPS beat(12)2.45%
EPS beat(16)9
Avg EPS beat(16)3.24%
Revenue beat(2)1
Avg Revenue beat(2)5.49%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)11.14%
Revenue beat(4)3
Avg Revenue beat(4)4.13%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)11.14%
Revenue beat(8)4
Avg Revenue beat(8)-0.67%
Revenue beat(12)6
Avg Revenue beat(12)-2.58%
Revenue beat(16)9
Avg Revenue beat(16)-1.81%
PT rev (1m)0.36%
PT rev (3m)-8.58%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-22.1%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-3.49%
Revenue NQ rev (1m)1.07%
Revenue NQ rev (3m)-6.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.88 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.66 | ||
| P/FCF | 9.5 | ||
| P/OCF | 3.5 | ||
| P/B | 1.54 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 1.39 |
EPS(TTM)2.94
EY11.26%
EPS(NY)3.35
Fwd EY12.85%
FCF(TTM)2.75
FCFY10.52%
OCF(TTM)7.46
OCFY28.59%
SpS39.6
BVpS16.99
TBVpS14.68
PEG (NY)2.02
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 19.13% | ||
| ROCE | 30.7% | ||
| ROIC | 24.25% | ||
| ROICexc | 31.95% | ||
| ROICexgc | 34.7% | ||
| OM | 29.66% | ||
| PM (TTM) | 8.21% | ||
| GM | 49.85% | ||
| FCFM | 6.94% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.92%
ROIC(5y)25.74%
ROICexc(3y)49.22%
ROICexc(5y)37.05%
ROICexgc(3y)52.95%
ROICexgc(5y)39.96%
ROCE(3y)44.19%
ROCE(5y)33.64%
ROICexcg growth 3Y-4.45%
ROICexcg growth 5Y16.65%
ROICexc growth 3Y-4.1%
ROICexc growth 5Y18%
OM growth 3Y-8.57%
OM growth 5Y5.15%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 129.94% | ||
| Cap/Sales | 11.91% | ||
| Interest Coverage | 41.95 | ||
| Cash Conversion | 48.55% | ||
| Profit Quality | 84.52% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.66 |
F-Score6
WACC7.38%
ROIC/WACC3.29
Cap/Depr(3y)119.04%
Cap/Depr(5y)96.27%
Cap/Sales(3y)9.19%
Cap/Sales(5y)11.03%
Profit Quality(3y)100.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.15%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-31.25%
EPS Next Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y4.97%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%17.12%
Revenue Next Year-5.64%
Revenue Next 2Y-4.34%
Revenue Next 3Y-3%
Revenue Next 5Y-4.76%
EBIT growth 1Y-1.64%
EBIT growth 3Y-4.07%
EBIT growth 5Y15.92%
EBIT Next Year29.75%
EBIT Next 3Y6.16%
EBIT Next 5Y3.26%
FCF growth 1Y-70.95%
FCF growth 3Y-27.45%
FCF growth 5Y17.48%
OCF growth 1Y-41.2%
OCF growth 3Y-11.3%
OCF growth 5Y7.9%